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In addition, the chapter has highlighted the particular opportunities and threats faced by MNEs when designing environmental strategies. We found that important choices need to be made regarding the development of location bound (poorly internationally transferable) or non-location bound (internationally transferable) green capabilities. The presence or absence of leveraging effects benefiting industrial performance, as well as the flexibility of resource commitments to environmental improvements, are critical in the choice to develop green capabilities. However, little research so far has been conducted on the internal, firm-specific variables that determine the development of green capabilities in MNEs.

A resource-based perspective, with an emphasis on the requirement of complementary assets in the MNE, may be a fruitful avenue for further research. Christmann (2000) has adopted such an approach, albeit in the context of domestic firms. Her approach does suggest, however, that the successful development and international transfer of global best practices in the environment area is unlikely to be suitable to all MNEs. For example, the impact on performance of early timing of environmental innovations and their international transfer is very likely to depend on the MNE's general capability to obtain first-mover advantages through process innovations and their rapid international transfer, within the MNE network.

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